PETACH TIKVA, Israel--(BUSINESS WIRE)--Aug 20, 2007 - Can-Fite
BioPharma (TASE:CFBI), a biotechnology company traded on the Tel
Aviv Stock Exchange, announced today the successful completion of
preclinical trials with CF102, the second molecule in the Company's
development pipeline, which is the basis for a drug indicated for
the treatment of liver cancer and hepatitis. Success of the
preclinical trials will enable Can-Fite to submit to the US Food
and Drug Administration (FDA) an application for phase I human
clinical trials. The Company estimates that the clinical phase of
the trials will begin in the up-coming months.

Can-Fite VP Drug Development Dr. William Kerns: "CF102 has been
evaluated in an IND enabling pharmacokinetic, metabolism,
toxicology and safety pharmacology program in the US and Europe.
Theses preclinical studies progressed smoothly and no issues that
could adversely affect the clinical development program were
identified. In particular, CF102 has been shown in these
pre-clinical studies to be safe. CF102 is thus positioned to move
forward to Phase 1 clinical trials. The company plans to file an
IND and commence Phase 1 during the next couple of months," stated
Dr William Kerns, VP Development for Can-Fite.

With the initiation of the CF102 clinical trial, Can-Fite will
have two pipeline drugs in humans for diverse indications including
cancer, autoimmune inflammatory disease and viral diseases.

CF102 binds with high selectivity and specificity to the A3
Adenosine Receptor, which is over-expressed on the cell surface of
liver cancer cells. Laboratory studies have shown that CF102
induces apoptosis of liver cancer cells. Liver cancer affects about
450,000 new patients each year and is highly prevalent in people
infected with hepatitis virus and in alcohol abusers. This type of
cancer is particularly common in Eastern countries, due to the high
proportion of people infected with the hepatitis virus. The current
market share for liver cancer is estimated at about USD 0.5 billion
due to lack of appropriate treatment.

CF102 belongs to a chemical class of substances called
nucleosides, known to act as antiviral agents. Laboratory studies
conducted by the Company in collaboration with a leading laboratory
at Temple University in Philadelphia show that CF102 is also active
against the hepatitis virus. The number of individuals infected
with hepatitis B and C worldwide is 350 million and 170 million,
respectively, and these numbers are rapidly increasing in recent
years. The market share is currently about USD 3 billion annually
due to lack of appropriate treatments.

Prof. Pnina Fishman, CEO of Can-Fite, said today: "We are very
pleased with the rapid progress in the development of CF102 and
with the impressive results obtained in preclinical studies which
will enable the Company to proceed into human clinical trials
within several months. This drug is added to CF101, which is being
developed for three indications: rheumatoid arthritis, psoriasis
and dry eye syndrome."

Can-Fite recently reported the results of a phase IIb trial with
CF101 for the treatment of rheumatoid arthritis. Following these
results, the company decided to further pursue the development of
this indication. A decision will be made in the near future about
the nature of further development and type of trials required.

CAN-FITE BIOPHARMA LTD is a public company traded on the Tel
Aviv Stock Exchange. The Company, which commenced business activity
in 2000, was founded by Prof. Pnina Fishman, a Rabin Medical Center
investigator, and patent attorney Dr. Ilan Cohn, a senior associate
at Reinhold Cohn Patent Attorneys. Prof. Fishman serves as the CEO
of Can-Fite. The Company was founded on the basis of scientific
findings made by Prof. Fishman and focuses on the development of
molecule-based drugs that bind to receptors of cancerous or
inflammatory cells and inhibit their development.

Can-Fite currently has two drugs in development, CF101 and
CF102. The company is simultaneously conducting several clinical
and preclinical trials with the two drugs for various indications.
CF101 is being studied for the treatment of rheumatoid arthritis,
dry eye syndrome and psoriasis. Can-Fite has also begun the
development of CF102 for the treatment of liver cancer and
hepatitis is also underway.